Corporate governance and investment cash-flow sensitivity: evidence from Tunisia

Autor:	Dorra Ellouze, Wafa Cherif
Rok vydání:	2020
Předmět:	media_common.quotation_subject Corporate governance Financial system Sample (statistics) Investment (macroeconomics) Stock exchange Accounting Agency (sociology) Cash flow Quality (business) Business Finance media_common Panel data
Zdroj:	Afro-Asian J. of Finance and Accounting. 10:168
ISSN:	1751-6455 1751-6447
DOI:	10.1504/aajfa.2020.106254
Popis:	The aim of this paper is to investigate the effect of corporate governance quality on investment cash-flow sensitivity. We use panel data for a sample of 40 Tunisian non-financial firms listed on the stock exchange over the 2007 to 2016 period. Our results indicate that investment is sensitive to cash-flow but this investment cash-flow sensitivity is reduced when firms exhibit better governance quality. These findings suggest that improvement of corporate governance can solve agency problems and reduce financial constraints. We conclude that better governance leads to more efficient investment allocation in Tunisia.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::27dd47db39788f38078cdf38184246eb https://doi.org/10.1504/aajfa.2020.106254 Zobrazit plný text záznamu